Oba Rufus Adejugbe Aladesanmi Iii & Ors V. Engineer Abraham O. Ajanaku (2016)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

AHMAD OLAREWAJU BELGORE J.C.A.(Delivering the Leading Judgment)

This is an appeal against the ruling of the Ekiti State High Court of (Now hereinafter referred to as ?Lower Court?) presided over by Honourable J. O. Adeyeye, J (Now ?The Trial Judge?) delivered on the 29th day of September, 2015 whereby an arbitral award made by an Arbitrator, Engr. Adeola J. O. on the 8th day of July, 2014, was set aside at the instance of the Respondent herein.

The Appellant being dissatisfied with the said ruling has appealed to this Court vide a Notice of Appeal dated and filed on the 19th day of October, 2015, containing three grounds of appeal.

Parties have filed and exchange briefs of argument. The Appellant identified two issues for determination, viz:

i. Whether the Lower Court was right to have set aside the Arbitral Award on the ground of error of law on the face of the award (a ground not recognised by Sections 29 and 30 of the Arbitration and Conciliation Act, Cap. A18 of Laws of the Federation of Nigeria, 2014 or Cap. A18 Laws of the Federation of Nigeria, 2010) relying on the decision of the Court in the decided cases

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Aye-Femis Ent. Ltd. V. Saipen Nig. Ltd (2009) ALL FWLR (Part 460) and Araka v. Ejiagwu (2000) 15 NWLR (Part 692) 684. This issue flows from ground one of the Notice of Appeal.

ii. Whether the learned trial Judge was right in settling aside the award on the ground that Exhibit K. (AN INCOMPLETE REPORT OF THE INDEPENDENT QUANTITY SURVEYOR SOLELY APPOINTED BY THE ARBITRATOR) was unsigned and the same constitute on error of laws on the face of the award. The issue flows from Grounds two and three of the Notice of Appeal.

The facts of the case are that both parties entered into an agreement for the erection and completion of an ARENA for Ewi at Ewi?s Palace, Ado-Ekiti, Ekiti State. A dispute arose under the contract and pursuant to an arbitration clause in the said agreement, parties agreed between themselves to appoint an arbitrator. One Adeola Johnson was mutually appointed an Arbitrator by the parties. The Arbitrator made an award on the 8th day of July, 2014 directing the Appellants herein to pay to the Respondent herein a total sum of N4,518,000.00 (Four Million, Five Hundred and Eighteen Thousand Naira). The Respondent was not satisfied with

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the award and he approached the High Court of Ekiti State praying that the award be set aside. This was done vide a Notice of motion filed in the lower Court on the 18th day of August, 2014. The award was set aside by the lower court in a ruling delivered by Hon. Justice J. O. Adeyeye on the 29th day of September, 2015.

Being dissatisfied with the ruling aforesaid, the Appellants have appealed to this Court by a Notice of Appeal, containing three (3) Grounds of Appeal, filed on the 19th day of October, 2015. The Grounds of Appeal, shorn of their particulars read as follows:-

GROUND 1

The learned trial Judge erred in law which it (sic) held at page 11 of the Ruling that by combined effect of Sections 29(2) and 30(1) of the Arbitration and Conciliation Act, an arbitral award can be set aside where there is an error of law on the face of the record.